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Utah and Nation See Rise in Office-to-Apartment Conversions
Pandemic-era office vacancies drive growth in residential redevelopment projects
Apr. 1, 2026 at 2:24am
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Empty office buildings across Utah and the United States are being converted into rental apartment units, with over 600 such projects underway in Salt Lake City alone and 90,000 nationwide. Factors driving this trend include excess office space, financial pressures, government incentives, and the need for more housing.
Why it matters
The conversion of underutilized office buildings into apartments helps address housing shortages in many urban areas, while also repurposing existing infrastructure. However, these projects can face structural, financial, and regulatory challenges that slow the redevelopment process.
The details
In Salt Lake City, projects like Arbor 515 and Seraph at South Temple have created over 300 new rental units by converting old office buildings. Nationwide, over 90,000 apartment units are in the process of being developed through office-to-residential conversions, up 28% from a year ago. New York, Washington D.C., and Chicago lead the country in these types of redevelopment projects. Experts cite the COVID-19 pandemic's impact on office occupancy, financial pressures, and government incentives as key drivers behind the trend.
- At the start of 2026, over 90,000 apartment units were in the process of being converted from office space nationwide.
- In the past year, the number of office-to-apartment conversion projects has increased by 28% across the United States.
The players
RentCafe
A rental listing and research company that tracks data on apartment market trends, including the growth in office-to-residential conversions.
Salt Lake City Community Reinvestment Agency
A local government agency that has been involved in office-to-apartment conversion projects in Salt Lake City, such as the Aster Apartments, Spark Apartments, and Arbor 515.
What they’re saying
“While Utah has its own mix of projects, New York, Washington DC, and Chicago lead the nation with the most conversion projects.”
— RentCafe
The takeaway
The conversion of underutilized office space into new apartment units is a growing trend across the country, driven by pandemic-era changes in real estate demand. While these projects can face challenges, they represent an opportunity to repurpose existing infrastructure and increase housing supply in many urban areas.
